Professional Documents
Culture Documents
November 2016
2
November 2016
Perhaps Kansas Citys biggest disadvantage is its climate, This report analyzes the competitive position of the
which is not as attractive as in some other parts of the Kansas City metropolitan area in the context of other
country. However, as land-use regulation has been metropolitan areas. Metropolitan areas are the functional
strengthened and business environments have deteriorated or economic dimension of cities and will be the principal
in a number of metropolitan areas with better climates, focus of this analysis.1 They are labor markets as defined by
Kansas Citys competitive position has improved. the United States Office of Management and the Budget.
Labor markets are the standard unit for delineating
Despite its slow population growth in recent decades, the metropolitan areas both in the United States and in the
city of Kansas City, Missouri, may be poised for important world.2
growth. Population projections suggest that the suburban
areas of the city will add considerable population over the There will also be a focus on the city of Kansas City,
next 30 years. Accomplishing this will require retention Missouri, which is the historical core municipality. The
of the areas land use policies that allow housing to be economic and social futures of Kansas City, Missouri, and
developed that is attractive to households. the Kansas City metropolitan area are intertwined. The
best results will be achieved if all of the constituent parts
Competitive Assessment of the metropolitan area perform as closely as possible to
their potential.
Kansas Citys strongest advantages are its low cost of living
(the result of superior housing affordability), superior An improved future requires public policies that serve the
mobility, and a complete array of lifestyle choices. Kansas fundamental objectives:
Citys lower cost of living makes a high standard of living
possible and leads to less poverty. Kansas Citys greater Improving economic growth: The metropolitan area
mobility can be expected to result in greater economic should achieve strong economic growth that is broadly
growth and more leisure time for residents. For middle- based.
income households, Kansas City is genuinely world-class. Improving the standard of living and reducing
The key challenge for Kansas City will be to retain its poverty: Gross household incomes should increase at
strongest advantages as it seeks economic and population a rate faster than that of gross household expenditures,
growth. These advantages are, principally, its superior so that there are higher discretionary incomes and
housing affordability and mobility, both of which lower rates of poverty. Discretionary income (if any)
contribute to its low cost of living. Kansas City has a unique is the amount left over after paying taxes and buying
opportunity to set itself apart for growth from competitor necessities, such as housing, food, clothing, and
metropolitan areas that are implementing policies that make transportation. The amount of discretionary income
housing less affordable for middle-income households and (including below zero) literally defines the standard of
make it more difficult to get around. It will be important for living and poverty in the context of the cost of living.3
the Kansas City metropolitan area to continue policies that It is thus important to maintain a low (competitive)
permit environmentally sensitive and inexpensive housing cost of living while seeking to increase the gross
development and make sufficient improvements to the income of households in the area.
roadway system to preserve or improve mobility.
3
SHOW-ME INSTITUTE I ESSAY
Map 1: Map 2:
Kansas City Metropolitan Area Kansas City, Missouri: Annexation
History, 1853-2013
KANSAS CITY
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November 2016
Figure 1:
Population by Sector 19502010 (Kansas City Metropolitain Area)
900,000
Kansas City (MO)
800,000
Missouri Suburbs
700,000
Kansas Suburbs
600,000
500,000
400,000
300,000
200,000
100,000
0
1950 1960 1970 1980 1990 2000 2010
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SHOW-ME INSTITUTE I ESSAY
Figure 3:
Population Growth in the Kansas City Metropolitain Area by Sector
0.45
42.1% 2000
0.40 37.6%
2012 (ACS 20102014)
0.35
29.3% 30.5%
0.30
26.7%
Millions
0.25
22.1%
0.20
0.15
0.10
6.4%
5.1%
0.05
0.1% 0.2%
0.00
Urban Core: Urban Core: Ring Early Suburb Later Suburb Exurb
CBD
Small Areas (Zip Code Tabulation Zones)
Source: City Sector Model (U.S. Census Bureau data and ACS 20102014 data).
than the 457,000 residents it had in 1950, when Kansas This is not atypical for urban cores, and may be best
City was the 20th-largest municipality in the United illustrated by the city of St. Louis, which did not annex
States. Most surprisingly, however, this small population territory between 1950 and 2010 and experienced a
increase occurred as the city was annexing greenfield population loss from 857,000 to 319,000. The St. Louis
(undeveloped) land area totaling three times the size of loss was the largest for any large municipality in the
the 1950 municipal boundaries (refer to Figure 2 and high-income world over that period. All of the larger U.S.
map 2). The citys land area expanded from approximately core cities that did not annex between 1950 and 1990
80 square miles to 320 square miles between 1950 and experienced population declines.10
2014. As a result, the citys population density dropped
from 5,700 per square mile to 1,500 per square mile.6 The Domestic Migration
dispersion of population has been so great that the density Kansas City has attracted domestic migrants from other
of urbanization7 within the city is slightly lower than that parts of the United States since 2000, though there has
of the suburbs.8 been a decline in recent years. Between 2000 and 2014,
the Kansas City metropolitan area attracted approximately
But these data mask a huge population decline in the core 30,000 domestic migrants. By comparison, Los Angeles,
of the city. The 1950 boundaries of the city (see Map 2) long one of the nations fastest growing metropolitan areas,
had a population of less than 225,000 in 2010, indicating lost 1,500,000 net domestic migrants (See Section 3.12).11
a loss of more than half the population.9 This means that
all of Kansas City, Missouris population growth was Urban Form
in functionally post-war suburban areas, dominated by The Kansas City metropolitan area encompasses the
automobiles and lower-density housing. Kansas City urban area,12 which is the area of continuous
6
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SHOW-ME INSTITUTE I ESSAY
8
November 2016
9
SHOW-ME INSTITUTE I ESSAY
Large differences in housing affordability are a feature of In recent decades, the differences in housing affordability
recent decades. House prices around the nation varied across metropolitan areas has widened substantially. By
comparatively little in relation to incomes until the 1970s. 2015, median multiples in San Francisco, San Jose, San
From World War II until then, there was only limited Diego, and Los Angeles exceeded 8.0 (they were less than
regulation on the development of new housing. During 3.0 in 1970). Median multiples were over 5.0 in Riverside-
that time, house prices in the United States tended to San Bernardino, Boston, Portland, Denver, New York, and
be in a relatively narrow range (between 2 and 3 times Miami (they were less then 3.0 in 1970).31 Each of these
hosehold incomes) from the end of World War II until metropolitan areas has strict land use regulation.
the early 1970s (measured by the median multiple). In
the 1970s, housing affordability began to deteriorate in The affordability data and classifications are from the
California and in more recent decades has deteriorated in Demographia International Housing Affordability Survey
other parts of the nation, such as in Oregon, Washington, are indicated in Table 3 in the Appendix. The 12th
the Northeast, and some other markets. Moreover, in Annual (2016) edition provided data for more than 350
some of these markets, particularly in California, Oregon, metropolitan area markets in 9 nations, including 87 with
and Washington, land use regulations are becoming more more than 1,000,000 population.32
restrictive, not more liberal. The experience in other nations with similar economic
Housing Affordability Losses and Land Use Policy: systems and cultures (Australia, Canada, Ireland, New
Losses in housing affordability have been associated with Zealand, and the United Kingdom) was strikingly similar.
restrictive land use regulations, which were adopted in the Until the adoption of similar land-use regulations, starting
1970s in California and Oregon and later spread to other with the British Town and Country Planning Act of 1947,
parts of the nation.28 A typical strategy of more restrictive house prices tended to be three times household incomes
land use regulations has been to severely restrict or even or less. In all of these nations, with the exception of
prohibit development on the urban fringe, through urban Canada, urban containment policies have been imposed at
containment devices such as urban growth boundaries. the national level or pervasively at the sub-national level.
These restrictions make it difficult if not impossible to In Canada, urban containment policy has been adopted
build new housing on greenfield sites. A principal more slowly, but strong urban containment regulatory
purpose of urban containment policy is to densify urban systems are in place in Vancouver, Toronto, Montral, and
areas (densification). Calgary.
Severe restrictions on urban fringe land development Strong land-use policy (generally urban containment
create a shortage of land for development. The shortage of policy) exists wherever seriously unaffordable housing
land is associated with higher prices, just as recent decades has arisen (median multiple above 5.0).33 This includes
have shown that gasoline prices routinely rise as political the most economically depressed metropolitan areas,
or other constraints on oil supply are imposed (such as by such as Glasgow and Liverpool in the United Kingdom
OPEC).29 and Australias slowest growing major metropolitan area,
Adelaide.
The association between strong land use regulation and
reduced housing affordability is described by economists The Kansas City area has retained a relatively low housing
Richard Green of the University of Southern California cost, and therefore a low cost of living, exactly because it
and Stephen Malpezzi of the University of Wisconsin. has resisted enacting strong land use regulations.
They describe the impact of housing regulations, including 3.12 Net Domestic Migration: The Association with
urban containment boundaries: When the supply of any Housing Affordability
commodity is restricted, the commoditys price rises. To
the extent that land-use, building codes, housing finance, Net domestic migration is strongly associated with
or any other type of regulation is binding, it will worsen housing affordability. Generally, metropolitan areas
housing affordability.30 with more severe unaffordability have lost domestic
10
November 2016
migrants to metropolitan
Figure 7:
areas where housing is
affordable.34 Generally, huge Net Domestic Migration: 20002014
domestic migration losses (Selected Metropolitan Areas)
have occurred in California
and the Northeast, while
the South has made major Raleigh
Austin
gains. At the same time, the Nashville
Midwest has performed far Atlanta
Oklahoma City
better than California or Indianapolis
the Northeast. For example, Louisville
Seattle
Oklahoma City, Indianapolis, Columbus
and Louisville attracted more Birmingham
domestic migrants compared Kansas City
Cincinnati
to their 2000 population Pittsburgh
than Seattle, San Francisco, Grand Rapids
Memphis
San Jose, San Diego, and Saint Louis
Los Angeles (Figure 7). They San Diego
also outperformed every Boston
Buffalo
major metropolitan area Cleveland
along the Northeast Corridor Chicago
Detroit
(Washington to Boston). Los Angeles
New York
Other middle American San Jose
11
SHOW-ME INSTITUTE I ESSAY
average, and each of them had housing affordability 3.14 Housing Affordability in Kansas City
similar to that of the middle-American markets before they
implemented strict land-use regulation. Many markets have retained their historic housing
affordability. One of these is Kansas City, which had
In addition, greater housing affordability can attract a median multiple of 2.9 in 2015. Kansas City was
business relocation. This is illustrated by the now-in- ranked as the ninth most affordable43 out of 87 major
process move of the Toyota North American headquarters metropolitan areas in nine nations in 2015, according
from Los Angeles to Dallas-Fort Worth. Housing to the 12th Annual Demographia International Housing
affordability was, by one report, the principal driver. 37
Affordability Survey.44 All of the most affordable major
metropolitan areas are in the United States. All of
3.13 Severely Unaffordable Housing: Social and these, including Kansas City, retain more liberal land
Economic Consequences use regulation, having resisted pressure to implement
restrictive regulation, including urban containment
There are further consequences to the nation of
policy.
unaffordable housing. Recent research suggests that
the rising difference in housing affordability across By comparison, in the least affordable major
metropolitan areas has been associated with a significant metropolitan areas, residents pay from nearly three times
loss in national economic output (more than 10 to more than six times as much of their income for
percent).38 This, the authors estimate, accounted for a houses as in Kansas City. The median house price ranges
nearly $2 trillion loss in 2009. They attribute nearly all from 8.1 times income in Los Angeles and San Diego to
the loss to housing regulation. between 9 and 10 in San Francisco and San Jose to 10.8
times in Vancouver, 12.2 times in Sydney, and 19.0 times
Other research indicates that virtually all of the increase
in Hong Kong (Figure 8). Nearly all of the difference
in income inequality in the Western world can be
that has developed between Kansas City and these
traced to greater concentration of wealth in housing,
severely unaffordable has occurred in association with the
which can be tied to the extraordinary house price
increases associated with stricter land-use regulation. The implementation of urban containment land use policy.
45
researcher adds that: A natural first step to combat the Assuming that liberal regulation remains in place in
increasing role of housing wealth would be to re-examine Kansas City, its cost of living advantage relative to the
these regulations and expand the housing supply.39 highly regulated markets is likely to expand.
Recently, Jason Furman, the chair of the White House Comparing Kansas City to Denver and Portland: The
Council of Economic Advisors, expressed concern about differences in housing affordability trends are illustrated
the impact of strong land use regulation on housing by comparing Kansas City with Portland and Denver.
affordability, income equality, and economic growth.40 These metropolitan areas are similar in size to Kansas
City, but they have adopted more restrictive land use
Housing affordability is likely to continue worsening
regulations that include urban containment policy.
where there is more restrictive land regulation, because
the demand for housing continues to rise with the Denver, Kansas Citys closest major metropolitan
increase in population, while shortage of land is neighbor to the west, shares the characteristic of
exacerbated by the insufficiently flexible planning abundant flat, developable land. Denver's urban
policies.41 An illustration of the continuing problem of containment policy dates from the early 2000s. Portland
regulation-associated housing affordability losses is that was the first major U.S. metropolitan area to adopt urban
just over the past two years, the average median multiple containment policy in the 1970s. Seattle adopted urban
has risen 1.4 points among the 10 least affordable containment policy in the 1980s.
metropolitan areas, compared to an increase of only 0.1
points in the 10 most affordable major metropolitan In 1990, the three metropolitan areas had similar
areas.42 housing affordability. The median multiple in both
12
November 2016
Figure 8:
Best and Worst Housing Affordability Ranked
(87 Major Metropolitan Areas in 9 Nations)
1-Rochester, NY
1- Cleveland, OH
1- Cincinnati, OH, KY, IN
1- Buffalo, NY
5- Pittsburgh, PA
6- Saint Louis, MO-IL
6- Oklahoma City, OK
6- Grand Rapids, MI
6- Detroit, MI
10- Kansas City, MO-KS
10- Indianapolis, IN
10- Columbus, OH
78- Los Angeles, CA
79- San Diego, CA
80- London (GLA)
81- San Francisco, CA
82- Melbourne, VIC
83- Auckland, NZ
84- San Jose, CA
85- Vancouver, BC
86- Sydney, NSW
87- Hong Kong, CN
0 2 4 6 8 10 12 14 16 18 20
Median Multiple (House Price to Income Ratio)
Denver and Portland was 2.4. Kansas Citys median 3.0 before adopting strong land-use regulation, residents
multiple was 2.3. By 2015, the median multiples in now face median multiples that are more than three
Denver and Portland had more than doubled to 5.1.46 times as large as those in Kansas City.47
By comparison, the increase in the median multiple was
much less in Kansas City, to 2.9 (Figure 9). Portland As a result, households in Kansas City have a considerably
and Denver are not the worst examples. Sydney, larger percentage of their income available to purchase
Australia, which was among the earliest to adopt urban other goods and services. This suggests, all else equal, that
containment policy, now is among the least affordable the standard of living of a median-income household
housing markets internationally, with a median multiple in Kansas City is higher than that of its counterpart
of 12.2 in 2015, while San Jose and San Francisco have in Portland and nearly as high as in Denver. Kansas
median multiples of 9.7 and 9.4, respectively. In these Citys lower housing costs result in lower cost of living
metropolitan areas, which had median multiples of under adjusted poverty rates than would be the case if housing
affordability were as severe as in Denver or Portland.48
13
SHOW-ME INSTITUTE I ESSAY
3.2 Transportation
Figure 9:
Mobility is important to
Housing Affordability Comparison economic growth. Economic
(Kansas City, Denver, and Portland: 19902015) research indicates that job
creation and economic
growth seem to be greater in a
6 metropolitan area if the average
5.1 5.1
Median Multiple (Price to Income Ratio)
14
November 2016
Figure 10:
Median Income and Qualifying Income
(Median Priced Detached House: 2015)
San Jose
San Francisco
Los Angeles
San Diego
Seattle
Denver
Qualifying Income: Median House
Portland
Median Household Income
Fresno
Kansas City
rating is particularly significant given the fact that the respectively. Thus, congestion adds between two and
metropolitan area is cut in half by the Missouri River. three times as much time to trips in Denver and Portland
as in Kansas City.
The U.S. average is a 21 percent time loss, indicating that
a trip that would take 30 minutes without congestion Further, Kansas Citys traffic congestion trend has been
would take 36 minutes during peak periods. The world favorable. The Texas A&M Transportation Institute has
average travel time loss is 27 percent. Los Angeles has the been measuring traffic congestion for nearly four decades.58
worst peak period traffic congestion in the United States, In the first year for which data are available, (1982),
with an average travel time loss of 39 percent. Thus, in Kansas City had a four percent travel time loss during
Los Angeles, a trip that would take 30 minutes in free- peak periods. Kansas City ranked 41st-best in the nation
flowing traffic averages nearly 42 minutes. Istanbul has among the 101 urban areas included in the analysis. By
the worst peak period traffic congestion in the world, 2014, Kansas City had a 15 percent travel time loss due to
with a 58 percent travel time loss, indicating that a 30 peak period traffic congestion. However, traffic congestion
minute trip without congestion averages 47 minutes. deteriorated even more rapidly outside Kansas City. As
Denver and Portland, similar sized to Kansas City, have a result, in 2014, Kansas City improved to the 26th best
traffic congestion indices of 22 percent and 26 percent, traffic congestion out of the 101 urban areas.
15
SHOW-ME INSTITUTE I ESSAY
Figure 11:
Best and Worst Traffic Congestion Ranked
(146 World Metropolitan Areas)
1- Kansas City
1- Richmond
3- Cleveland
4- Indianapolis
5- Saint Louis
5- Birmingham
5- Abu Dhabi
8- Salt Lake City
8- Rochester
8- Pheonix
8- Oklahoma City
8- Milwaukee
8- Jacksonville
8- Columbus
8- Cincinnati
136- Los Angeles
136- Taipei
138- Warsaw
139- Bucharest
140- Saint Petersburg
141- Recife
142- Salvador
143- Moscow
144- Rio de Janeiro
145 Mexico City
146- Istanbul
By contrast, similar sized Portland and Denver did much Even more significantly, both Denver and Portland have
more poorly over the same period. In 1982, Denvers constructed extensive urban rail systems during the
peak hour lost travel time was 10 percent, a figure that interim. Denvers work trip transit market share59 is more
rose to 30 percent by 2014, when Denver had the 86th than four times that of Kansas City, while Portlands is
best (16th worst) traffic congestion. Portland had lost more than six times. Yet, in Denver, the transit market
travel time of 13 percent in 1982, which worsened to 35 share is only marginally higher than before rail was built,
percent by 2014. In 2014, Portland had the 95th best and in Portland it is less.60 Even without these massive and
traffic congestion in the nation (7th worst). Portlands expensive transit improvements, traffic congestion is far
traffic congestion is particularly intense for its modest less severe in Kansas City (Figure 12).
population, which ranks 24th in the nation.
16
November 2016
17
SHOW-ME INSTITUTE I ESSAY
Figure 13:
Average Journey to Work Travel Times
(One-Way: Top Major Metropolitan Areas)
25
Median Multiple (Price to Income Ratio)
20
15
10
0
NY lo, NY s, MI y, OK ty, UT O-KS e, Wi d, CT s, OH KY-IN
er, pid Cit Ci ke for bu e,
h est a ,M
Buff nd Ra oma Lake s City ilwau Hart olum uisvill
Roc t
Gra Oklah Sal Kansa M C Lo
Automobile usage is so pervasive that it is little different Transit Access and Travel Times: Unlike the
among low-income employees than among the overall metropolitan areas of pre-war America, the modern
work force. In Kansas City, only 3.0 percent of low metropolitan area is not suited for substantial shares
income employees66 commute to work by transit. This is of travel by transit. This is illustrated by Accessibility
more than the share of the overall workers using transit, Observatory research at the University of Minnesota
but still very small. Cars are much more important to indicating that the average employee in the Kansas City
low-income workers. This small difference is less than metropolitan area can reach only 0.7 percent of jobs
might be expected in light of the perception that low- within 30 minutes by transit. A 60 minute transit trip
income residents depend substantially on transit for their raises the number of jobs accessible to only 2.9 percent.
mobility. In 2013, 76 percent of low-income Kansas By comparison, 1.2 percent of the employment in 46
City workers drove alone to work, nearly as high as the metropolitan areas with more than 1,000,000 population
approximately 83 percent of all workers who drove to can be reached by the average employee in 30 minutes,
work. and 5.4 percent in 60 minutes.67
18
November 2016
This minimal access to employment by transit is because the border of Mexico to Duluth, Minnesota. This route
trip origins or destinations are too far from transit service includes Dallas-Fort Worth, the 4th largest metropolitan
(this is called the last mile problem). Generally, travel by area in the nation, and Minneapolis-St. Paul, the 16th
transit is slower than by car. In Kansas City, the average largest in the nation, as well as San Antonio, Austin,
one-way travel time for driving alone is 22.3 minutes, Oklahoma City, and Des Moines. In addition, direct
somewhat more than one half the time for the average interstate access is provided to Houston, with one of
transit work trip. Similar sized metropolitan areas, such the nations largest ports, via Interstate 45, which meets
as Denver and Portland, that have built extensive rail Interstate 35 in the Dallas-Fort Worth area.
systems, have even longer average travel times by transit.
Nationally, transits travel time is approximately twice that Kansas City is the southern terminus of Interstate 29,
of driving alone (see Table 4 in the Appendix). which traverses Omaha on the way to the Canadian
border, near Winnipeg, Canadas 8th-largest metropolitan
New Urban Rail Systems: Indeed, infusions of funding area. Kansas City is also the northern terminus of
to improved transit around the nation have made little Interstate 49, which is largely completed to its junction
difference. At least $100 billion dollars have been spent to with Interstate 40 in Arkansas and will eventually be
build and expand urban rail systems around the nation.68 completed to a junction with Interstate 10 in Lafayette,
In the metropolitan areas where this has taken place, Louisiana. This route will provide more direct access to
driving alone has continued to be the dominant mode of New Orleans and its large port.
travel to work and has not declined as the rail systems were
opened.69 Kansas City is also a railroad hub. Kansas City is served
by four of the largest railways in the United States, the
In the modern metropolitan area, with its dispersed Burlington Northern Santa Fe, the Union Pacific, the
employment and faster travel by car, there is little realistic Norfolk Southern, and the Kansas City Southern. The
potential for transit to reduce automobile use. Kansas City Southern is the principal international rail
carrier between the United States and Mexico.
Assessment: Passenger Transportation
These facilities have contributed to making Kansas City
Kansas City has among the least traffic congestion in the nations largest freight rail center by tonnage and the
the world and the shortest work travel times. This is 3rd-largest trucking center. Further, Kansas City has the
the result of Kansas Citys extensive freeway and arterial most foreign trade zone space in the nation.70
system, its lower-density urban form, and its dispersion
of employment. A continuation of Kansas City policies Kansas Citys pivotal position in the national highway
that provide sufficient highway capacity could improve its system and its strong rail hub enable it to be one of the
competitive position in the future. nations leading intermodal markets. Intermodal freight
transport refers to the transfer of shipping containers from
3.22 Freight Transport and Logistics one mode to another (such as truck to rail, or air to truck).
Kansas City is at the virtual center of the United States, Kansas City is home to three major logistics facilities.
approximately midway between Houston, largest
metropolitan area on the Gulf Coast, and the Canadian A Burlington Northern Santa Fe Railroad intermodal
border and nearly one-half the way from the Atlantic facility (Logistics Park Kansas City71) is located in
Coast in the WashingtonBaltimore area and San Edgerton, in Johnson County. The intermodal facility
Francisco on the Pacific Coast. and adjacent industrial park opened in 2013 and covers
nearly 1,500 acres. Logistics Park Kansas City is the largest
One of the nations principal east-west interstate highways, intermodal facility between the ports of Los Angeles and
Interstate 70, traverses the Kansas City area. A principal Long Beach and Chicago. This rail route has the greatest
northsouth Interstate highway, Interstate 35, crosses containerized freight volume in the United States.
the metropolitan area in its route from Laredo, Texas, on
19
SHOW-ME INSTITUTE I ESSAY
A Kansas City Southern Railroad intermodal facility In fact, Kansas City ranks very well not only in the
(Centerpoint KCS Intermodal Center72) is located in United States but also internationally on issues of
Grandview, Missouri, in Jackson County. Kansas City significant interest to typical households, such as
Southern is the principal rail provider between the superior housing affordability (which drives the cost
United States and Mexico, and its tracks (combined of living, see Section 3.11) and comparatively minimal
with those of Kansas City Southern de Mexico) reach traffic congestion (see Section 3.21).
the port of Lazaro Cardenas in the state of Michoacan,
as well as major markets such as Monterey, Mexico The first principle of livability is affordability. If a
City, Pueblo, Toluca, and Veracruz. The Centerpoint household cannot afford to live in a metropolitan area,
KCS Intermodal Center opened in 2008 and includes then it is not livable to them. Kansas City does very
approximately 1,300 acres, including an adjacent well in comparisons with The Economists list of the 10
industrial park. most livable cities75 in 2015. Kansas City has better
housing affordability than all 10. In Calgary, the most
An air freightbased logistics facility (KCI Intermodal affordable metropolitan area on The Economist list,
Business Centre73) is located at Kansas City housing is 45 percent more costly relative to incomes as
International Airport. The facility covers approximately in Kansas City. The median income household would
700 acres and began operations in 2008. pay more than twice as much relative to their incomes
for the median priced house in Toronto and more
Assessment: Freight Transport and Logistics than four times as much in Sydney (see Table 5 in the
Appendix).76
Kansas City has one of the nations largest logistics
industries, including pivotal intermodal truck and The comparison is similar with respect to traffic
rail facilities made possible by its central location. congestion. Kansas Citys traffic congestion is less
These facts alone can be a business driver; for example, intense than that of any of The Economists 10 most
Amazon just announced that it will occupy all of an livable cities. With an average travel time loss of 10
822,000 square foot facility to be used as a distribution percent, Kansas City is about one-half as congested
center in Edgerton, Kansas.74 as the least congested Economist livable city, Calgary.
Vancouver and Toronto are nearly 3 times as congested,
3.3 Livability
while Auckland (New Zealand), smaller than Kansas
Kansas City performs very well in relation to cities City, is more than three times as congested (see Table 6
that are considered the best places to live in the world in the Appendix).
(livable cities). These cities tend to be concentrated in
Three of The Economists top 10 livable cities have more
Australia and Canada.
productive economies than Kansas City, resource-rich
Periodically, organizations such as Mercer, The Calgary and Perth (Australia) as well as international
Economist and others produce lists of most livable banking center, Zrich. Seven of the top 10 livable
cities. The press and others tend to give considerable cities have lower gross domestic products per capita
credence to these lists, often without making it clear than Kansas City, including Toronto, Sydney, and
that the principal purpose of such reviews is to inform Auckland (see Table 7 in the Appendix).77
international companies seeking to relocate highly
Kansas City compares favorably to all of The Economists
paid executives to other cities. Needless to say, what
10 most livable cities in housing affordability and
may make a city livable to an executive with $500,000
traffic congestion, and outperforms all but three in
or more in annual income is not likely to have much
productivity. A middle income quality of life equal to
relevance to middle income households, which had a
that of Kansas City cannot be achieved in any of the
median income of approximately $54,000 in the United
most livable international cities.
States in 2014.
20
November 2016
Another livability index ranks Kansas City highly population was barely 250,000 over the past 12 years.
in middle class aspiration factors. Building Cities This compares to the overall growth of more than 20
for People ranks Kansas City 12th out of the 106 million in the suburban and exurban areas.80
metropolitan areas in the United States with more than
500,000 population.78 Among the major metropolitan Assessment: Livability
areas, Kansas City trails only Austin, Raleigh,
Minneapolis-St. Paul, Hartford, Washington, D.C., and Kansas City rates highly as an attractive place to live. It
Salt Lake City and leads the other 46. exceeds the performance of cities considered the most
livable in important dimensions, such as housing
Livability Choices in Kansas City: Kansas City offers a affordability, economic productivity, and mobility. On
high-quality suburban lifestyle. This is evident not only issues of primary importance to typical households,
in the areas outside the city of Kansas City, Missouri, housing affordability and mobility, Kansas City is truly
but also in the suburban development that has occurred world class and exceeds the performance of cities ranked
since World War II in the city itself. highest in the world.
The resurgence of urban cores around the nation has Indeed, California, which grew rapidly from World
been an important turnaround from the low points War II until 2000, has lost domestic migrants to both
reached especially in the 1970s and 1980s. However, Missouri and Kansas since 2000. The pervasiveness of
the development does not indicate a return to the this trend is illustrated by the fact that California even
city of any magnitude.79 For example, at the national lost net domestic migrants to Oklahoma and Iowa,
level, urban cores, including downtown areas and the states that had huge outflows to California before
inner ring, accounted for only 1.2 percent of major World War II.
metropolitan area growth between 2000 and 2012. The
bulk of this growth was in the downtown areas (0.9 California has often been rated as being unfriendly to
percent). Yet the entire urban core growth in the more business, which discourages business relocation to the
than 50 metropolitan areas with more than 1,000,000 state, despite its superior climate (below).81 An exodus
21
SHOW-ME INSTITUTE I ESSAY
of businesses from California to other states has been Another indicator of business climate is business tax
evident for some time.82 friendliness. The Tax Foundation places Missouri as the
17th-best state in business tax friendliness, while ranking
Assessment: Climate Kansas as 22nd best in its 2016 State Business Tax Climate
Index.87 The 2015 Chief Executive ratings of the best
Kansas Citys principal competitive disadvantage may be
states for business show Missouri to be ranked at 26th and
its weather, yet Kansas Citys strong advantages, combined
Kansas at 27th.88
with poor performance (such as in housing affordability
and traffic congestion) in some cities with better climates While the state of Missouri may rank well, the city of
can do much to neutralize this disadvantage. Kansas City, Missouri, has an unfavorable situation in
its earnings tax and high sales taxes. This is likely to be a
3.5 Business Attractiveness
barrier to attracting new businesses (Section 3.65).
One of Kansas Citys principal competitive disadvantages
Assessment: Business Attractiveness
is its location in a region that is growing slowly. Much
of the nations population and economic growth have Kansas City has the disadvantage of being located in a
shifted from the Midwest and East to the South and West slow-growth region of the nation. However, as higher-
in recent decades. From 1980 to 2000, 82 percent of the growth parts of the nation enact policies that put
national population increase occurred in the South and economic growth and job creation at risk, especially
West. This was up from the 69 percent between 1950 and restrictive land-use policies and policies that retard mobility,
1980 and the 43 percent from 1900 to 1950. Since 1980, Kansas City could benefit. (Sections 3.11 and 3.2)
the Midwest has added 19 percent to its population, the
East 12 percent, the South 69 percent, and the West 80 3.6 City of Kansas City Missouri
percent (Figure 14).
The city of Kansas City also has important opportunities
While Kansas Citys geographic location is an important and challenges.
obstacle to economic growth, it need not be definitive.
Some metropolitan areas in the slow-growing East and 3.61 Suburban Development Potential
Midwest grow faster than others. Even metropolitan As noted earlier, the city of Kansas City, Missouri, has
areas in the fast-growing South and West have begun experienced far slower population growth and employment
to experience slower growth that has been associated growth than the rest of the metropolitan area. However,
with their high costs of living, especially their high the city has an important opportunity. The population
housing costs. At the same time, geographic location is
and employment projections suggest better performance
an advantage for Kansas City for freight and logistics, as in the future. The population growth over the next 30
indicated earlier. years (to 2040) is projected to be substantial, principally
Kansas City appears to rank somewhat in the middle of in the outer suburban areas of the city (especially in
major metropolitan areas in attractiveness to business. Clay and Platte counties), representing 15 percent of the
The Millkin Institute produces a report ranking the metropolitan areas growth.89
best-performing metropolitan and sub-metropolitan Less than 3 percent of the citys residential growth is
economies83 in the United States. Millkin ranks 200 projected to be in Jackson County, which includes the
metropolitan areas and metropolitan districts,84 evaluating urban core. Attracting this suburban growth will require
employment growth, wage growth, and high-technology the city to continue to permit the construction of housing
growth. The Kansas City metropolitan area ranked just that is attractive to consumers. As was noted earlier, the
below the top one-third of this list, at 77th.85 If the sub- Kansas City area has a particular attraction for families,
metropolitan areas are eliminated, Kansas Citys ranking and this attraction is likely to increase in the future. The
remains approximately the same, just below the top one- suburban areas of the city of Kansas City will need to
third.86
22
November 2016
compete with suburban areas outside the city, in part by carriers from expanding service. It will be important for
offering housing that meets consumer tastes. The suburban Kansas City to choose the most cost-effective alternative
areas of Platte and Clay counties are likely to be more for their airport.
attractive to families because of their higher school district
rankings (Section 3.64). 3.63 Convention Center Hotel
23
SHOW-ME INSTITUTE I ESSAY
Figure 14:
Major Metropolitan Growth: 1900-2010
(53 Largest Metropolitan Areas: 2010 )
80
East
70 Midwest
60 South
West
50
Millions
40
30
20
10
0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
education evaluation website (Niche.com) as the 96th- research correlates slower municipal economic growth
best performing out of 100 in the two-state metropolitan relative to suburban areas with earnings taxes: The
area.98 This record and performance seem likely to bottom line is that city earnings taxes do matter. Cities
discourage families with school-age children from locating that wish to increase their rate of economic growth should
in the area served by the Kansas City School District. consider reducing or eliminating their earnings taxes.99
It is likely that Kansas City would be more competitive
The larger school districts that serve the areas with the without the earnings tax.
greatest potential for new housing are rated higher. The
Park Hill School District ranks 7th, according to Niche, In addition, income tax in the city of Kansas City is higher
in the Kansas City metropolitan area. The Platte County than the state average. Its sales tax also exceeds the state
School District ranks 23rd and the North Kansas City average, and in some city districts is even higher.100 Both
School District ranks 30th out of the 100 school districts of these make the city of Kansas City less competitive.
in the metropolitan area. Generally, higher income taxes create an incentive for
residents to live elsewhere in the metropolitan area (or in
3.65 City Taxation the nation), while higher sales taxes encourage people to
make purchases outside the city limits.
The city of Kansas City, Missouri has an earnings tax,
unlike other jurisdictions in the metropolitan area. This The city of Kansas Citys higher taxesits earnings
can induce businesses to avoid locating in the city, and tax, income tax and sales taxesmay be an important
deter employees from seeking work in Kansas City, contributor to the slower rates of growth that have
because their after-tax earnings will be less. Economic
24
November 2016
occurred in the city relative to both the Missouri and and review, and a host of financial incentives offered
Kansas suburbs for decades. by the Portland Development Commission (e.g., land
write-downs, subsidies for affordable housing, loans
3.66 The Kansas City Streetcar and grants for economic development, and faade
improvements), all have contributed to the success of
Another Kansas City, Missouri, project, the Kansas City
downtown Portland in the areas around the streetcar
Streetcar, has been characterized as both a threat and
routes. Staff perspective, shared by many other
an opportunity by various interests in the community.
planners and economic development practitioners in
A principal justification for the project was additional
Portland, is that it is difficult to single out the streetcar
economic growth. This rationale mirrors that of other
as a key factor in the downtowns success; rather it
streetcar projects that have been pursued around the
is one among a host of urban amenities creating the
nation.
conditions for success.
However there is question as to the potential of streetcar
The financial incentives provided by the Portland
projects to generate economic development. This is
Development Commission have been massive. Portland
illustrated by a publication by the Transportation Research
has an aggressive financing program for development
Board (TRB), (National Academy of Sciences), a division
and urban renewal. According to the most recent budget,
of the National Research Council, which raised questions
Portlands maximum bond obligation authority for urban
about the validity of such claims101:
renewal areas exceeds $2.5 billion and the currently
The literature regarding empirical measurement of outstanding obligations are more than $750 million.104
actual changes in economic activity, such as changes
Perhaps the most telling indication that streetcar
in retail sales, visitors, or job growth, is almost
contributions to economic development are uncertain is in
nonexistent for streetcars.
the TRB report title for the section assessing the impact:
The report went on to describe an apparent exception that Summary of Literature Limitations.105
is used to justify streetcar economic development claims,102
The literature on impacts on the built environment
noting that an often-cited report on Portlands streetcar:
overwhelmingly focuses on heavy rail and light rail
ends with a clear statement that causality needs to systems. The only study with quantitative analysis
be further analyzed, because other factors were in play of a contemporary streetcar systems impacts can be
during the period of the streetcars construction in found in Portland Streetcar Development Impacts.
downtown Portland. As described in more detail in this report, the studys
findings are not necessarily applicable to other U.S.
The other factors in play are further described:103 streetcar systems, owing to the unique presence in
Portland of an Urban Growth Boundary (UGB)
Staff reported that although the Portland streetcar constraining development at the regions edge (pushing
has been immensely popularized throughout the development into the center), the presence of a
transit field, those engaged in economic development framework for urban renewal [Urban Renewal Areas
in Portland view the streetcar as one of many (URAs)] with substantial redevelopment incentives,
components of a longstanding and ongoing program and limits on the studys analysis of causality.
to revitalize downtown Portland and to reshape the
city as increasingly transit-oriented. Major initiatives, The report goes on to say:
including an extensive light rail system (also traversing
the downtown), the Fareless Square (free bus, light rail, Given that federal funding for streetcars emphasizes
and streetcar in the downtown), extensive streetscape economic development, along with many local
improvements, substantial allowable density, fine- policymakers objectives to stimulate economic
tuned parking regulations, strong design guidelines development, the literature is particularly weak on
25
SHOW-ME INSTITUTE I ESSAY
26
November 2016
cities with better climates can do much to neutralize and productivity. However, the advantages of Kansas City
this disadvantage. are not well known throughout the metropolitan area, the
nation, or the world.
Business Attractiveness: Kansas City also has the
disadvantage of being located in a slow-growth region The Kansas City Area Development Council (KCADC)
of the nation. However, prospects could improve as seeks to attract business relocation to the Kansas City
higher-growth parts of the nation enact policies that metropolitan area. These efforts could be significantly
reduce job creation. strengthened by a stronger emphasis on the world-class
advantages of the metropolitan area.
Threats
The most important opportunities and threats to Kansas For example, the KCADC website correctly notes Kansas
City relate to whether the area retains its policies that Citys lower median house prices. However, the data are
produce in its advantages relative to other metropolitan considerably out of date, reflecting 2011 prices, when
areas. Kansas Citys land-use and transportation policies house prices across the nation were depressed. They have
are the foundation of its two principal advantagesits since begun rising again, but Kansas City house prices
low cost of living and its superior transportation system. have dropped relative to the cities used in the comparison.
However, these advantages are under threat. For example, Kansas City median house prices rose
$43,000 from 2011 to 2015. This is considerably less
Efforts to implement more restrictive land use planning than the $210,000 increase in Los Angeles, the $122,000
policies are underway around the country. The urban increase in Denver, the $119,000 increase in Seattle, and
planning profession generally supports these policies, and the $88,000 increase in Atlanta.
the dominant view in planning is that such policies should
be implemented in virtually all metropolitan areas.110 Moreover, while there is a description of Kansas Citys road
These policies, as noted above, have been associated with transportation system, there is no indication of its superior
significant losses in housing affordability. This necessarily traffic congestion ratings. That Kansas City is tied for the
leads to a lower standard of living and greater poverty than best in the world among ranked cities should be at the very
would otherwise be the case. top of Kansas Citys marketing material.
Similarly, there is strong urban planning opposition to the KCADC is mentioned because of its dominant position,
automobile orientation of urban areas. Kansas City, with but all economic development organizations serving the
its superior mobility performance that depends on quality region, including those in and outside government, should
freeways and arterials, would be materially disadvantaged emphasize Kansas Citys greatest strengths.
if local and state officials were to adopt Portland model
policies that generally fail to provide sufficient capacity for The Way Forward
growth and instead divert financial resources to transit,
which is simply incapable of providing equal mobility. The fundamental question is, What competitive
advantages does Kansas City have over other
Ignoring these threats could be costly to the future of metropolitan areas, and how can it maintain or expand
Kansas City. Kansas Citys potential for a better economic those advantages? The answers are clear. Kansas Citys
future relative to other metropolitan areas is largely strongest advantages are its low cost of living (the result of
dependent upon retaining its superiority in housing superior housing affordability), superior mobility, and a
affordability and traffic congestion. complete array of lifestyle choices. However, each of these
advantages could be threatened by policies that currently
Marketing Kansas City to the World enjoy favor within urban planning circles.
The fundamental conclusion is that Kansas City ranks The key challenge for Kansas City in the future seems
better than metropolitan areas commonly rated as the best likely to be retention of its strongest advantages: its
in the world in housing affordability, traffic congestion low cost of living (which results from superior housing
27
SHOW-ME INSTITUTE I ESSAY
28
November 2016
8
2,228 per square mile in the city of Kansas City compared 20
Demographia United States Central Business Districts (Down-
to 2,247 outside the city of Kansas City. towns), http://www.demographia.com/db-cbd2000.pdf,
2014.
9
Based on the author's analysis of 2010 zip code and census
tract boundaries. The 1950 census was the first in which the 21
Derived from Mid-America Regional Council data.
borders of the city had expanded north of the Missouri River
into Clay County. Regional Price Parities from the Bureau of Economic
22
29
SHOW-ME INSTITUTE I ESSAY
30
November 2016
48
Standard poverty rates in the United States are not adjusted 57
Richmonds housing affordability was considerably worse
for the cost of living. than that of Kansas City, with a median multiple of 3.7,
nearly 30 percent more costly relative to incomes as Kansas
49
Assumes a 10 percent down payment. Qualifying income Citys 2.9.
data is from the National Association of Realtors. The median
household income data is as estimated in the 12th Annual 58
Texas A&M Transportation Institute, Annual Mobility
Demographia International Housing Affordability Survey, based Index. Available at http://mobility.tamu.edu/ums/.
on American Community Survey data. 59
Percentage of workers using transit for the work trip.
50
It has been suggested that metropolitan areas like Kansas
City have better housing affordability because of the large
60
Cox W. Evaluating Urban Rail, newgeography.com, De-
supply of flat land that extends well beyond the urban fringe. cember 5, 2014.
In fact, there are sufficiently large supplies of developable land 61
Cox W. Improving the Competitiveness of Metropolitan Areas,
in areas perceived to be geographically constrained, such as Frontier Centre for Public Policy, 2012.Available at http://
the San Francisco area. Further, the highly regulated Fresno, archive.fcpp.org/files/1/PS135_Transit_MY15F3.pdf.
California, area (which will soon reach the 1,000,000 popula-
tion threshold), with fringe land supplies at least as great as 62
Cox W. Urban Travel and Urban Population Density.
Kansas City, has a median multiple of 5.0 (well above that of 63
Cox W. Evaluating Urban Rail, newgeography.com, De-
Kansas City).
cember 5, 2014.
51
An extreme example can be seen in highly regulated Van- 64
Derived from U.S. Census Bureau data.
couver, which experienced a detached house average price
increase of more than C$400,000 in just five months (from 65
Calculated from U.S. Census Bureau data.
C$1,409,000 to C$1,816,000), according to data from the
Real Estate Board of Metro Vancouver (September 2015 to 66
Workers earning $15,000 or less annually in 2013.
February 2016), http://www.rebgv.org/monthly-reports?mont 67
San Francisco has the best employment access in 30 min-
h=February&year=2016
utes, at 3.4 percent. Salt Lake City has the highest 60 minute
52
Prudhomme R, Lee C. (1998), Size, Sprawl, Speed, and job access share for the average employee, at 14.5 percent.
the Efficiency of Cities, Obervatoire de lconomic et des In- 68
Thoreau Institute, How Much Has New Rail Transit
stitutions Locals; Hartgen D T, Fields G. Accessibility, Traffic
Cost? Available at http://ti.org/RailCapitalCost.pdf. Con-
Congestion and Regional Economic Performance, Reason
verted from 2009 to 2015$.
Foundation, 2009. Available at http://reason.org/news/show/
gridlock-and-growth-the-effect. 69
Cox W. Evaluating Urban Rail, newgeography.com, De-
cember 5, 2014.
53
Cox W. Urban Travel and Urban Population Density.
Journeys. November, 2012. Available at http://www.lta.gov.sg/ 70
Northpoint Development and BNSF Railway, Kansas
ltaacademy/doc/J12%20Nov-p19Cox_Urban%20Travel%20 City: The Crossroads of Connectivity. Available at http://www.
and%20Urban%20Population%20Density.pdf. logisticsparkkc.com/wp-content/uploads/2013/03/BNSF.
LPKCKansasCity8.5x11.FINAL_.pdf
54
FHWA (Federal Highway Administration) urban area.
These urban areas are different from urban areas as defined by 71
Facility website: http://www.edgertonks.org/BNSF/
the U.S. Census Bureau. They are usually somewhat larger in
land area and population.
72
Facility website: http://www.grandview.org/index.
aspx?page=462
55
Calculated from Table HM-72, Federal Highway Adminis-
tration, Highway Statistics 2013.
73
Facility website: http://kcilogistics.com/
56
Tom Tom Traffic Congestion Index. Available at https://www.
74
(http://www.bizjournals.com/kansascity/news/2016/03/24/
tomtom.com/en_gb/trafficindex/. amazon-fulfillment-center-edgerton.html).
31
SHOW-ME INSTITUTE I ESSAY
75
The Worlds Most Livable Cities, The Economist, August 86
This assumes that the highest ranking sub-metropolitan
18, 2015, http://www.economist.com/blogs/graphicde- area (metropolitan district) in a metropolitan area would be
tail/2015/08/daily-chart-5. generally representative of the overall metropolitan area.
76
Comparable housing affordability data is not available for 87
Walczek J, Drenkard S, Henchman J. http://taxfoundation.
Vienna, Zurich, or Helsinki. However, a review of national org/article/2016-state-business-tax-climate-index.
and international housing websites makes it clear that house
prices are far higher in each of these metropolitan areas than
88
2015 Best and Worst State Rankings, Chief Executive.
in Kansas City (based on a comparison of costs per square Available at http://chiefexecutive.net/best-worst-states-busi-
foot). Websites consulted: Global Property Guide (http://www. ness/
globalpropertyguide.com/) and Statistics Finland. Available 89
Based on projections by the Mid-America Council.
at http://pxnet2.stat.fi/PXWeb/pxweb/en/StatFin/StatFin__
asu__ashi/254_ashi_tau_204.px/?rxid=4580eebb-2897-44e5- 90
Miller J. The Comparative Expense of the Proposed
9d18-65ad3f40ad85. New Terminal Plan for Kansas City International Airport,
Show-Me Institute, July 16, 2014, http://showmeinstitute.
77
U.S. metropolitan areas rank particularly well in produc- org/publication/taxes-income-earnings/comparative-expense-
tivity. Brookings Institution data indicate that 37 of the 50 proposed-new-terminal-plan-kansas-city
most productive metropolitan areas in the world were in the
United States in 2014. See: Wendell Cox, 10 most affluent Professor Rothengatter served as president of the World
91
cities in the aorld: Macau and Hartford top the list, Febru- Conference on Transport Research Society (WCTRS).
ary 21, 2015. Available at: http://www.newgeography.com/
content/004853-10-most-affluent-cities-world-macau-and-
92
Flyvbjerg B, Bruzelius N, Rothengatter W. Megaprojects and
hartford-top-list/. Risk: An Anatomy of Ambition, (Cambridge, UK: Cambridge
University Press, 2003).
78
Kotkin J, Cox W, Schill M, Modarres A. Building Cities for
People, Chapman University Center for Demographics and
93
Flyvbjerg B., Holm MS, and Bent SL. How Common and
Policy, 2015. Available at http://www.chapman.edu/wilkin- How Large Are Cost Overruns in Transport Infrastructure
son/_files/CitiesforPeople%201.pdf. Projects, Transport Reviews 23 (2003), pp. 71-88.
79
Cox W. Flocking Elsewhere: The Downtown Growth
94
Vockrodt S. Kansas City Wants to Keep a Convention
Story, newgeography.com, October 1, 2012. Center Consultants Report Buried, Pitch News, August 11,
2015. Available at http://www.pitch.com/kansascity/kansas-
80
Derived from Demographia City Sector Model. city-wants-to-keep-a-convention-center-consultants-report-
buried/Content?oid=5426824&showFullText=true .
81
2015 Best and Worst State Rankings, Chief Executive.
Available at http://chiefexecutive.net/best-worst-states-busi- 95
Tuohey P. The Conventional Center Deal May Cost
ness/ Kansas City Conventions, Show-Me Institute, November
12, 2015. Available at http://showmeinstitute.org/blog/
82
Vranich J. California Business Departures: An Eight-Year corporate-welfare/convention-hotel-deal-may-cost-kansas-
Business Review 2008-2015, Spectrum Business Solutions, city-conventions.
2016. Available at http://www.spectrumlocationsolutions.
com/pdf/Businesses-Leave-California-.pdf. 96
Steve Vockrodt, Kansas City Wants to Keep a Convention
Center Consultants Report Buried, Pitch News, August 11,
83
Metropolitan divisions. 2015. Available at http://www.pitch.com/kansascity/kansas-
84
Portions of metropolitan areas. city-wants-to-keep-a-convention-center-consultants-report-
buried/Content?oid=5426824&showFullText=true
85
DeVol R, Ratnatunga M, Bedroussian A. 2014 Best Per-
forming Cities, Millkin Institute, 2015. Available at http://
97
Robertson J. Kansas City School District Gains Provision-
www.best-cities.org/2014/best-performing-cities-report-2014. al Accreditation, The Kansas City Star, August 6, 2014. Avail-
pdf able at http://www.kansascity.com/news/politics-government/
article1158397.html.
32
November 2016
98
Niche, https://k12.niche.com/rankings/public-school- 110
Smart growth (and growth management, etc.) is a broad
districts/best-overall/m/kansas-city-metro-area/ title used principally in the United States to denote the restric-
tive land use policies identified in Sections 3.11 to 3.14, As is
99
Haslag JH. How an Earnings Tax Harms Cities Like noted there, some policies, especially urban growth boundar-
St. Louis and Kansas City, Show-Me Institute, March 8, ies and similar strategies have been identified with huge losses
2006. Available at http://showmeinstitute.org/sites/default/ in housing affordability. These policies are overwhelmingly
files/200704111_smi_study_1_0.pdf. supported by the urban planning profession, around the
100
See Ishmael P. Is Kansas City a Low Tax City? Show-Me world. For example, the federal government has programs
Institute, September 11, 2013, http://showmeinstitute.org/ to encourage adoption of smart growth strategies at the
blog/local-government/kansas-city-low-tax-city. metropolitan and local area level. These include financial
incentives (https://www.epa.gov/smartgrowth). The American
101
Golem R, Smith-Heimer J. Relationships between Streetcars Planning Association also endorses smart growth: see Ameri-
and the Built Environment, Transportation Research Board, can Planning Association, Policy Guide on Smart Growth,
2010. Available at http://onlinepubs.trb.org/onlinepubs/tcrp/ April 14, 2014, https://www.planning.org/policy/guides/
tcrp_syn_86.pdf. pdf/smartgrowth.pdf. The ongoing campaign to implement
smart growth is detailed in Wendell Cox and Adrian Moore,
102
Ibid. Urban Containment: The Social and Economic Consequences
103
Ibid. of Limiting Housing and Travel Options, Reason Foundation,
March 2016. Available at http://reason.org/news/show/urban-
Portland Development Commission, 2014-2015 Budget.
104
containment-the-social-travel.
Available at http://www.pdc.us/Libraries/Budget/PDC_Ad-
opted_Budget_-_FY_2014-15_pdf.sflb.ashx, p. 16.
105
Golem R, Smith-Heimer J. Relationships between Streetcars
and the Built Environment, Transportation Research Board,
2010. Available at http://onlinepubs.trb.org/onlinepubs/tcrp/
tcrp_syn_86.pdf.
106
Horsely L. KC streetcar plan: pricey transit or economic
magnet?, The Kansas City Star, October 22, 2012. Available
at
http://www.kansascity.com/latest-news/article310017/KC-
streetcar-plan-pricey-transit-or-economic-magnet.html
Lachman ML, Brett DL. Gen Y and Housing: What They
107
Want and Where They Want It, Urban Land Institute, 2015.
Available at http://uli.org/wp-content/uploads/ULI-Docu-
ments/Gen-Y-and-Housing.pdf.
108
Cox W. Urban Core Millennials, A Matter of Perspec-
tive, newgeography.com, March 6, 2015.
109
Casselman B. Think Millennials Prefer the City, Think
Again, fivethirtyeight.com, March 20, 2015. Available at
http://fivethirtyeight.com/datalab/think-millennials-prefer-
the-city-think-again/
33
SHOW-ME INSTITUTE I ESSAY
APPENDIXTABLES
Source: www.demographia.com/db-citysectormodel.pdf.
34
November 2016
Table 2: Household Incomes and Cost of Living: 2014 (Major Metropolitan Areas)
Median
Median Household Cost of Household
Metropolitan Income: Cost of Living Income:
Rank Area Living Adjusted Index Rank Nominal Rank
1 San Jose, CA $79,539 121.3 2 $96,481 1
2 Washington, DC-VA-MD-WV $76,121 119.8 4 $91,193 2
3 San Francisco-Oakland, CA $69,179 120.3 3 $83,222 3
4 Hartford, CT $68,259 100.4 20 $68,532 8
5 Boston, MA-NH $68,230 110.9 7 $75,667 4
6 Minneapolis-St. Paul, MN-WI $67,294 102.7 15 $69,111 7
7 Seattle, WA $66,548 107.1 10 $71,273 6
8 Baltimore, MD $65,718 108.8 8 $71,501 5
9 Raleigh, NC $65,181 95.6 35 $62,313 14
10 Austin, TX $64,441 98.7 26 $63,603 12
11 Denver, CO $63,807 104.8 14 $66,870 10
12 Richmond, VA $63,343 96.2 32 $60,936 17
13 Salt Lake City, UT $62,830 99.7 21 $62,642 13
14 St. Louis, MO-IL $61,912 89.7 52 $55,535 29
15 Cincinnati, OH-KY-IN $61,579 90.5 50 $55,729 28
16 Kansas City, MO-KS $60,826 93.7 42 $56,994 24
17 Columbus, OH $60,290 93.5 44 $56,371 25
18 Portland, OR-WA $59,829 100.7 18 $60,248 19
19 Houston, TX $59,714 100.6 19 $60,072 20
20 Virginia Beach-Norfolk, VA-NC $59,586 98.8 25 $58,871 23
21 Dallas-Fort Worth, TX $59,058 100.8 17 $59,530 22
22 Atlanta, GA $58,998 95.2 36 $56,166 26
23 Sacramento, CA $58,494 102.6 16 $60,015 21
24 Grand Rapids, MI $58,214 93.4 45 $54,372 31
25 Chicago, IL-IN-WI $57,784 106.6 11 $61,598 16
26 Philadelphia, PA-NJ-DE-MD $57,619 107.9 9 $62,171 15
27 Charlotte, NC-SC $57,333 93.4 45 $53,549 32
28 Oklahoma City, OK $56,666 92.5 47 $52,416 38
29 San Diego, CA $56,286 117.6 6 $66,192 11
30 Providence, RI-MA $56,230 99.3 23 $55,836 27
31 Nashville, TN $56,119 93.8 40 $52,640 36
32 San Antonio, TX $55,993 94.1 39 $52,689 35
33 Milwaukee, WI $55,845 95.2 36 $53,164 34
34 Indianapolis. IN $55,842 93.6 43 $52,268 40
35 Louisville, KY-IN $55,785 91.3 49 $50,932 44
36 Cleveland, OH $55,742 89.5 53 $49,889 46
37 Pittsburgh, PA $55,513 94.2 38 $52,293 39
38 New York, NY-NJ-PA $54,837 122.3 1 $67,066 9
39 Phoenix, AZ $54,123 98.6 27 $53,365 33
40 Detroit, MI $53,807 97.5 29 $52,462 37
41 Buffalo, NY $53,384 93.8 40 $50,074 45
42 Jacksonville, FL $53,191 96.1 34 $51,117 42
43 Rochester, NY $52,558 97.2 31 $51,086 43
44 Birmingham, AL $52,273 90 51 $47,046 49
45 Las Vegas, NV $51,627 99.2 24 $51,214 41
46 Riverside-San Bernardino, CA $51,496 106 12 $54,586 30
47 Los Angeles, CA $51,414 117.7 5 $60,514 18
48 Memphis, TN-MS-AR $49,776 92.1 48 $45,844 53
49 Orlando, FL $49,305 97.9 28 $48,270 48
50 New Orleans. LA $48,632 96.2 32 $46,784 51
51 Tucson, AZ $47,128 97.3 30 $45,856 52
52 Tampa-St. Petersburg, FL $47,112 99.5 22 $46,876 50
53 Miami, FL $46,063 105.2 13 $48,458 47
35
SHOW-ME INSTITUTE I ESSAY
Source: www.demographia.com/dhi.pdf.
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November 2016
Table 5: Kansas City and the World's Most Livable Cities: Housing Affordability
Source: Data from 12th Annual Demographia International Housing Affordability Survey.
*Vienna, Helsinki and Zurich are less affordable than Kansas City. See text, and also footnote 76.
Table 6: Kansas City and the World's Most Livable Cities: Traffic Congestion
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Table 7: Kansas City and the World's Most Livable Cities: Gross Domestic Product per
Capita (PPP)
Source: Data from Brookings Global Metro Monitor 2015 (Brookings Institution).
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November 2016
NOTES
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5297 Washington Place I Saint Louis, MO 63108 I 314-454-0647
3645 Troost Avenue I Kansas City, MO 64109 I 816-561-1777
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